Estimate the fair market value of torino marine at the end

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Reference no: EM133417480

Questions:

a. Estimate the fair market value of Torino Marine at the end of 2021. Assume that after 2025, earnings before interest an tax will remain constant at $200 million, depreciation will equal capital expenditures in each year, and working capital not change. Torino Marine's weighted-average cost of capital is 9 percent and its tax rate is 20 percent Note: Do not round intermediate calculations. Enter your answer in millions rounded to 1 decimal place.

b. Estimate the fair market value per share of Torino Marine's equity at the end of 2021 if the company has 36 million shar outstanding and the market value of its interest-bearing liabilities on the valuation date equals $260 million.

Reference no: EM133417480

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